Surcharging Premium Cards Under the Card Settlement

Where the settlement stands

A federal judge in Brooklyn gave the revised Visa and Mastercard merchant settlement preliminary approval in June 2026. A final approval hearing is set for November 16, 2026, and some merchant groups have objected or said they may appeal. Until the court rules and any appeals are settled, none of the new surcharge options are in force. Today's network surcharge rules still apply.

What the proposed settlement would allow

As reported by Payments Dive, the settlement would let merchants surcharge premium and commercial cards up to 3%, either at the product level (picking specific premium or rewards card types) or at the brand level (every Visa or every Mastercard credit card). It would also let merchants decline some higher-cost premium and commercial cards. Debit and prepaid cards still could not be surcharged.

What customers think of card fees

Payments Dive cited a J.D. Power survey from January 2026: about 35% of small businesses with under $20 million in annual sales already add a card surcharge, and about 32% of their customers said they occasionally or frequently abandon a purchase when they see one. That does not tell you how your own customers will react. It does tell you that a fee carries a real risk of lost sales, and that the risk should be part of the decision.

Four questions to answer before you add a fee

If premium cards are a small share of your sales, a separate fee may bring in little and add friction at the counter. If they are a large share, the numbers may justify it, provided your customers accept it.

Do not forget disclosure

Wherever surcharging is allowed, the card network rules require clear notice to customers before they pay, and the fee has to show on the receipt. A fee on some cards and not others needs extra care: your staff and your signs must explain which cards carry it. If your point-of-sale system cannot tell premium cards apart automatically, a product-level surcharge may not be practical yet. Ask your POS provider before you promise anything to customers.

What changes for multi-location and enterprise merchants

Larger merchants should look at premium and commercial card share by location and by channel, since the mix often differs between stores, online orders and invoiced business customers. Commercial cards matter more for B2B sellers, where a fee can strain long-standing accounts. Enterprise teams also need to check that every terminal, online checkout and invoicing tool can apply and disclose the fee the same way, in every state where they sell, before rolling it out.

A lower rate may beat a new fee

Many merchants who look at surcharging are really trying to cut the cost of accepting cards. A better-priced account lowers the cost on every card without asking customers to pay more. CELER Merchants is an independent agent, not a processor. Send us a recent statement and we will show you your effective rate and what a premium-card fee would be measured against, free.